The receiver for the failed lender, Banksia Securities, has raised the possibility of legal action against the group's directors and auditor.

Banksia collapsed in October owing investors $660 million, many of them workers or retirees, living in regional Victoria.

At creditors' meetings in Kyabram, Shepparton and Ballarat today, investors were told they are likely to get just over 50 per cent of their money back.

Receiver Tony McGrath of McGrathNicol, told 600 people at Kyabram that Banksia's failure can be partly attributed to a downturn in property prices.

"The style of lending that Banksia did was to lend funds to borrowers who were investing in property.

"Property is a sector that's been badly hit by the GFC and even more so in country areas like country Victoria," he said.

Mr McGrath says the auditor should be questioned over its role in the collapse.

"There's an obvious issue around the role played by the auditor, there is a set of accounts that were signed-off in September that said the company was in a surplus position to the tune of $24 million and today we are telling debenture holders that they are in deficit of somewhere between $200 and $300 million.